Emirates Global Aluminium (EGA) released its 2025 performance report, showing that in 2025, the company's net profit (excluding GAC data) increased by 16% to US$1.34 billion, and core profit increased by 7% to US$2.53 billion, mainly due to the rise in the average real price of aluminum and the increase in total sales volume. EGA's EBITDA in 2025 was AED 9.28 billion (US$2.53 billion), compared to AED 8.69 billion (US$2.37 billion) in 2024. In 2025, EGA's foundry metal production reached a record high of 2.84 million tons, up from 2.77 million tons in 2024. In 2025, EGA's sales volume of low-carbon aluminum products increased by 70%, reaching approximately 196,000 tons.

On February 28, 2026, Rongbai Technology released its 2025 annual performance report. In 2025, Rongbai Technology achieved operating revenue of 12.271 billion yuan, a decrease of 18.67%; and recorded a net loss attributable to shareholders of the listed company of 182 million yuan, a decrease of 161.64%. In 2025, due to multiple factors such as intensified domestic market competition and changes in the international political and economic landscape, the company's operating performance faced interim pressure, with operating revenue of 12.271 billion yuan and a net loss attributable to the parent of 182 million yuan. However, quarterly profitability gradually recovered, and the company returned to profitability in the fourth quarter.

SMM February 28: According to SMM statistics, overseas aluminum production in February 2026 increased 2.5% YoY; new aluminum projects in Indonesia and Angola continued ramping up, with overseas daily average production rising 0.9% MoM. On February 17, 2026, Alba released its Q4 and annual report for 2025. The report showed Alba’s production hit a record high of 1,623,139 mt in 2025, exceeding targets despite a fire incident at year-end. The affected production line is currently in the recovery phase. On February 19, 2026, Century Aluminum announced its Q4 results. The report indicated primary aluminum shipments fell 14% QoQ in Q4 2025, mainly due to production declines caused by equipment failure at its Iceland plant. In 2026, the 50,000 mt idle capacity at Mt. Holly is expected to resume production in April, reaching full capacity by the end of Q2; the Iceland plant is expected to restart earlier than planned, now scheduled to begin production resumptions by the end of April 2026 and approach full capacity by the end of July. South 32’s performance report maintained Mozal aluminum smelter’s FY2026 production guidance at 240,000 mt, with the plant expected to begin maintenance shutdown from March 15. However, foreign media reported the government is taking necessary measures to maintain Mozal’s operations. SMM will continue monitoring. Looking ahead to March 2026, operating capacity at new aluminum projects in Indonesia and Angola is expected to continue climbing, but production cuts or shutdown risks at the Mozambique plant may cause daily average aluminum production to turn negative. Nevertheless, high aluminum prices continue to stimulate global aluminum supply acceleration, with the Iceland plant’s restart expected ahead of schedule and other plants slightly increasing operating rates. Overall, aluminum supply is expected to maintain growth, though global aluminum inventory trends warrant ongoing attention.

SMM February 28 News: According to SMM statistics, overseas aluminum production totaled in February 2026 increased 2.5% YoY; new aluminum projects in Indonesia and Angola continued ramping up, with the overseas daily average production up 0.9% MoM. On February 17, 2026, Alba released its Q4 and annual report for 2025. The report showed that Alba's production hit a record high of 1,623,139 mt in 2025, exceeding targets despite a fire accident at year-end 2025. The production line affected by the fire is currently in the recovery phase. On February 19, 2026, Century Aluminum announced its Q4 results. The report indicated that primary aluminum shipments in Q4 2025 fell 14% QoQ, mainly due to production declines caused by equipment failure at the Iceland aluminum plant. In 2026, the 50,000 mt idle capacity at the Mt. Holly plant is expected to resume production in April, reaching full capacity by the end of Q2; the Iceland plant is expected to restart earlier than originally planned, now scheduled to begin production resumptions by the end of April 2026 and recover to near full capacity by the end of July. South 32's performance report showed that the Mozal aluminum plant in Mozambique maintained its FY2026 guidance production of 240,000 mt, meaning the Mozal plant is expected to transition into maintenance shutdown from March 15. However, foreign media reported that the government is taking necessary measures to keep the Mozal plant operating. SMM will continue monitoring. Looking ahead to March 2026, operating capacity at new aluminum projects in Indonesia and Angola is expected to continue climbing, but the Mozal plant faces risks of output reduction or shutdown. Affected by this, daily average aluminum production may turn to negative growth. Nevertheless, high aluminum prices continue to stimulate global aluminum supply acceleration; the Iceland plant's production resumption is expected earlier than planned; other plants also slightly increased operating rates. Overall, aluminum supply is expected to maintain growth, and global aluminum inventory trends need ongoing attention. [Data Source Statement: Except for public information, other data are processed by SMM based on public information, market communication, and SMM's internal database model, for reference only and not constituting decision-making advice.] Data Source: SMM (Guo Mingxin 021-20707919)

SMM News on May 30: In the last week before the Dragon Boat Festival, spot quotes for cobalt products all declined to varying degrees amidst the general performance of downstream demand. Although cobalt chloride quotes continued to fall, smelters showed a clear reluctance to budge on prices, driving its prices to fluctuate at a high level... SMM has compiled the price changes of cobalt products this week, as detailed below: Refined Cobalt: According to SMM spot quotes, refined cobalt continued to maintain its downward trend this week. As of May 30, the spot quote for refined cobalt fell to 220,800-247,000 yuan/mt, with an average price of 233,900 yuan/mt, a decrease of 1,950 yuan/mt or 0.83% from May 23. 》Check SMM Cobalt and Lithium Spot Quotes Regarding the reasons for the decline in spot quotes for refined cobalt, SMM understands that it was mainly due to some recent news that disrupted market sentiment, pushing down the transaction prices of refined cobalt and leading to certain panic selling in the market. Currently, this situation appears to be a short-term emotional outburst, with no significant expected deviation in the actual supply and demand structure. From the supply and demand perspective, on the supply side, with the declining profitability of refined cobalt production, refined cobalt output slightly decreased this month. Smelters continued to fulfill long-term contracts, and the spot order market still relied on trader supplies. On the demand side, downstream producers maintained a purchasing-as-needed rhythm, with no significant improvement in purchase activity. It is expected that next week, the spot price of refined cobalt may continue to remain in the doldrums. Cobalt Salts (Cobalt Sulphate and Cobalt Chloride): Cobalt Sulphate: According to SMM spot quotes, cobalt sulphate spot quotes continued to decline throughout the week. As of May 30, the spot quote for cobalt sulphate fell to 47,200-49,900 yuan/mt, with an average price of 48,550 yuan/mt, a decrease of 0.92% from May 23. 》Check SMM Cobalt and Lithium Spot Quotes According to SMM, from the supply and demand perspective, on the supply side, the quotes from mainstream cobalt sulphate smelters have not changed, but spot quotes for cobalt sulphate from recycling plants continued to decline significantly, with extremely sporadic overall transactions and transaction prices far below the actual quotes. On the demand side, the overall purchasing sentiment of downstream producers was poor, with no improvement in the order situation of material plants. Raw materials were still being consumed from inventory, and producers' purchase willingness continued to decrease, maintaining only fixed inquiries without any buying actions. Against this backdrop, SMM expects that next week, the spot price of cobalt sulphate may fluctuate weakly. Cobalt Chloride: Regarding cobalt chloride, according to SMM spot quotes, cobalt chloride quotes also declined significantly this week compared to the past. As of May 30, the spot quote for cobalt chloride fell to 58,900-60,400 yuan/mt, with an average price of 59,650 yuan/mt, a decrease of 0.91% from May 23. According to SMM, the quotes from major smelters in the cobalt chloride supply side remained firm, indicating a certain reluctance to sell. However, some smelters showed a stronger willingness to sell, leading to a small number of low-priced transactions in the market, which subsequently pulled down the overall spot price. From the demand side, downstream enterprises mainly engaged in just-in-time procurement and generally held a certain level of cobalt salt inventory. They made fewer inquiries and maintained a strong wait-and-see sentiment. Despite this, due to the ongoing shortage of raw materials, the market's bullish sentiment remained high and consistent. It is expected that next week, the spot price of cobalt chloride will continue to fluctuate at highs and is unlikely to decline. Regarding Co3O4: According to SMM's spot quotes, the spot quotes for Co3O4 also faced downward pressure this week. As of May 30, the spot quotes for Co3O4 fell to the range of 199,000-207,800 yuan/mt, with an average price of 203,400 yuan/mt, representing a 1.26% decline compared to May 23. According to SMM, from the supply side, the quotes from Co3O4 smelters were lowered, and the smelters' willingness to sell increased somewhat. On the demand side, most LCO producers had already completed their order procurement in the early stage and still held a certain level of inventory. They adopted a wait-and-see attitude and had a low willingness to stockpile. Therefore, market transactions this week were mainly focused on executing existing orders, with overall market activity remaining low. Considering that the price of cobalt salt, the raw material, remained at highs, the downside room for the spot price of Co3O4 in the short term is limited. It is expected that the spot price will maintain highs. In terms of news: Hanrui Cobalt previously released its Q1 2025 performance report. According to the announcement, the company achieved a total operating revenue of 1.501 billion yuan in Q1, up 14.56% YoY. The net profit attributable to shareholders of the publicly listed firm was 42.8596 million yuan, up 39.77% YoY. When asked about the company's current products and capacities, Hanrui Cobalt stated that its cobalt products include refined cobalt powder, cobalt hydroxide, cobalt carbonate, cobalt chloride, refined cobalt, etc. Among them, in terms of cobalt powder, Anhui Hanrui has a fully automated production line with an annual capacity of 5,000 mt of refined cobalt powder, leading globally in terms of capacity and automation level. Its cobalt powder exports rank among the top in China. The cobalt hydroxide capacity is 10,000 mt/year, and the refined cobalt capacity reaches 15,000 mt/year. In addition, Ganzhou Hanrui put into operation the "Project with an Annual Output of 5,000 mt of Electrodeposited Nickel and 5,000 mt of Electrodeposited Cobalt" in July 2024. Currently, its electrodeposited cobalt capacity has reached 15,000 mt. Copper products: Mainly copper cathode, with a capacity of 70,000 mt/year. Specifically, the copper cathode capacity of its subsidiary Hanrui Metal is 50,000 mt, and that of Congo Metal is 20,000 mt. Other products and capacities: The planned capacity of high-grade nickel matte is 20,000 mt/year, currently under construction. The capacity of cathode materials is 5,000 mt/year. Additionally, Hanrui Cobalt was questioned about the impact of the DRC's restrictions on cobalt exports on the company. It responded that in February 2025, the DRC made a decision to suspend cobalt intermediate product exports for four months. Following the DRC's export ban, cobalt product prices saw a significant increase. The company maintains a safety stock of raw materials. The export ban did not have a major impact on the company's production. In 2024, the company achieved a total revenue of 5.95 billion yuan, up 24.25% YoY; net profit attributable to shareholders of publicly listed firms was 202 million yuan, up 45.85% YoY. Regarding the reasons for the company's performance growth, Hanrui Cobalt stated that it was mainly due to the expansion of the company's copper and cobalt production capacity, as well as an increase in production and sales. In terms of cobalt production in 2024, Hanrui Cobalt produced a total of 16,169.17 mt (metal content) of cobalt products, a significant increase of 94.78% YoY; sales reached 15,400.65 mt (metal content), up 70.26% YoY, primarily driven by the commissioning of the company's 10,000 mt refined cobalt project. Annual report data shows that Hanrui Cobalt is mainly engaged in the R&D, production, and sales of refined cobalt powder, cobalt hydroxide, electrodeposited cobalt, electrodeposited copper, and other copper and cobalt products. Centered around copper and cobalt products, the company has formed a complete industrial process from the development and acquisition of raw cobalt ore to the processing and smelting of cobalt ore, and ultimately to the production of cobalt intermediate products and cobalt powder. It is one of the few domestic enterprises with a complete industrial chain for non-ferrous metal cobalt. At the end of the reporting period, the company's cobalt powder ranked among the top three in global market share. In July 2024, the company completed the construction of a 5,000 mt electrodeposited cobalt and a 5,000 mt electrodeposited nickel project in Ganzhou. Considering the process similarity and actual market conditions, the 5,000 mt electrodeposited nickel project was simultaneously converted into a 5,000 mt electrodeposited cobalt project. By the end of 2024, Ganzhou Hanrui had a production capacity of 15,000 mt of electrodeposited cobalt.

Novelis' fiscal year 2025 performance report shows that in fiscal year 2025, Novelis' net sales increased by 6% YoY to USD 17.1 billion, primarily driven by the rise in average aluminum prices and a 2% increase in total shipments of rolled products to 3.757 million mt. The growth in shipments was mainly attributed to record-high shipments of beverage packaging and an increase in shipments of aerospace products, although this growth was partially offset by a decline in shipments of specialty products and automotive products. In fiscal year 2025, Novelis' net income attributable to common shareholders increased by 14% YoY to USD 683 million, while adjusted EBITDA decreased by 4% to USD 1.8 billion. This was mainly due to the YoY increase in aluminum scrap prices, an unfavorable product mix, and rising operating costs, which were partially offset by an increase in total shipments and product price increases.

Novelis' fiscal year 2025 performance report shows that in fiscal year 2025, Novelis' net sales increased by 6% YoY to USD 17.1 billion, primarily driven by the rise in average aluminum prices and a 2% increase in total shipments of rolled products to 3.757 million mt. The growth in shipments was mainly attributed to record-high shipments of beverage packaging and an increase in shipments of aerospace products, although this growth was partially offset by a decline in shipments of specialty products and automotive products. In fiscal year 2025, Novelis' net income attributable to common shareholders increased by 14% YoY to USD 683 million, while adjusted EBITDA decreased by 4% to USD 1.8 billion, primarily due to the YoY increase in aluminum scrap prices, an unfavorable product mix, and rising operating costs, which were partially offset by an increase in total shipments and product price increases.

SMM May 19 News: Yunnan Aluminum Co., Ltd. recently released its Q1 2025 performance report. According to the announcement, the company achieved a total revenue of 14.411 billion yuan in Q1, up 26.89% YoY. The net profit attributable to shareholders of the publicly listed firm was 974 million yuan, down 16.26% YoY. Regarding the reasons for the company's revenue growth, Yunnan Aluminum stated that it was mainly due to the increase in sales volume and selling prices of aluminum commodities during the reporting period. Meanwhile, the operating costs increased by 33.38% YoY due to the rise in raw material prices and sales volume of aluminum commodities during the reporting period. From the perspective of futures prices, the main SHFE aluminum contract generally fluctuated upward in Q1. As of the close on March 31, 2025, the main SHFE aluminum contract closed at 20,480 yuan/mt, with a quarterly increase of 3.49%. In terms of spot prices, according to SMM spot quotes, the SMMA00 aluminum spot quotes also generally showed an upward trend in Q1. As of March 31, the average spot price of SMMA00 aluminum was reported at 20,560 yuan/mt, up 790 yuan/mt from 19,770 yuan/mt at the end of 2024, representing an increase of approximately 4%. 》Click to view SMM aluminum product spot quotes In late January, coinciding with the Chinese New Year holiday, the unexpected destocking of aluminum ingot inventory in the first two weeks drove aluminum prices to continue to climb, reaching a high of 20,550 yuan/mt during the session on January 20, a new high since December 2024. However, as downstream enterprises took holidays near the end of the year, weakening consumption exerted downward pressure on aluminum prices, which fluctuated downward under pressure. Nevertheless, aluminum prices generally showed an upward trend in January. In February, coinciding with the Chinese New Year holiday, aluminum ingot inventory buildup was slightly higher than the same period in history. However, as downstream enterprises gradually resumed production after the holiday, aluminum prices maintained highs in February despite being in the off-season. By March, the aluminum market entered the traditional peak consumption season, with downstream demand gradually recovering. Coupled with the installation rush stimulated by the new PV policies in the past 1-2 months, aluminum consumption increased, and social inventory showed a destocking trend. Meanwhile, downstream demand also continued to rebound, driving aluminum prices to hold up well in early March. However, in late March, due to poor macro sentiment overseas, funds exited for risk aversion, leading to a decline in the futures market. Nevertheless, from a quarterly perspective, aluminum prices still performed well in Q1. Turning to the current aluminum prices, according to SMM, the recent aluminum market has received support from improved macro environments both domestically and overseas, but bullish and bearish factors are intertwined. On the supply side, domestic aluminum capacity is approaching the ceiling, and the insufficient recovery of hydropower in Yunnan has exacerbated regional supply tightness, limiting the increase in aluminum ingot output. On the cost side, a sudden notice of production suspension was issued for mining areas in Guinea where mining licenses were revoked late last Friday, sparking market concerns about the supply of bauxite raw materials, which may push up alumina costs. However, the specific impact remains to be evaluated. The demand side is under dual pressures from domestic seasonal weakness and trade uncertainties, making significant growth in the short term unlikely. Inventories of aluminum ingots have fallen to a low level compared to the same period last year, and tight spot liquidity is supporting aluminum prices. Overall, favorable macro conditions provide a floor for aluminum prices, and low inventories further strengthen price resilience. However, off-season pressure on the demand side limits upside room. In the short term, attention should be paid to the performance of domestic and overseas demand, as well as the supply situation of bauxite. As of May 19, the spot quote for SMM A00 aluminum remained at 20,220-20,240 yuan/mt, with an average price of 20,230 yuan/mt. Yunnan Aluminum has also been striving to improve the self-sufficiency rate of bauxite. Previously, the company stated that it is enhancing the self-sufficiency rate through the following methods: First, based on current exploration results, bauxite in Yunnan Province is mainly concentrated in areas such as Wenshan and Zhaotong, and the company will increase its efforts in bauxite development in Yunnan Province. Second, focusing on countries in Southeast Asia such as Laos, Indonesia, Vietnam, and Cambodia, the company will accelerate the acquisition of exploration rights for bauxite resources in surrounding areas and resource exploration. Third, the company will expedite the processing of existing exploration-to-mining permits, ensure resource continuity, and safeguard the amount of ore available for mining. Public information shows that during the reporting period, Yunnan Aluminum was mainly engaged in the mining of bauxite, production and sales of alumina, green aluminum, aluminum processing, and carbon materials for aluminum production. Its main products include alumina, prebaked anodes for aluminum production, graphitised cathodes, aluminum ingots for remelting, refined aluminum ingots for remelting, round and flat casting ingots of wrought aluminum and aluminum alloys, cast aluminum alloy ingots, round aluminum rods for electrical purposes, aluminum and aluminum alloy welding materials, etc. Meanwhile, the company actively expands its circular economy businesses, including comprehensive utilization of secondary aluminum, solid waste resources from aluminum production, and aluminum ash. It is worth mentioning that according to the company's 2024 performance report, the company achieved a total revenue of 54.45 billion yuan in 2024, up 27.61% YoY, hitting a record high since its listing. The net profit attributable to shareholders of the publicly listed firm was 4.412 billion yuan, up 11.52% YoY. The company mentioned in its annual report data that it currently has a production capacity of 1.4 million mt of alumina, 3.05 million mt of green aluminum, 1.6 million mt of aluminum alloys and aluminum processing products, and 820,000 mt of carbon products. Throughout 2024, the company actively sought to increase its electricity load, seized opportunities, and achieved rapid production resumptions in aluminum production. It promoted standardized production to enhance operational quality, achieving full coverage of standardized processes across the production lines of aluminum, alumina, and carbon products. The company achieved increased production and efficiency for its main products, producing 1.4088 million mt of alumina, 2.9383 million mt of primary aluminum, up 22.45% YoY, 805,800 mt of carbon products, up 2.85% YoY, and 1.2541 million mt of aluminum alloys and aluminum processing products, up 1.75% YoY. Yunnan Aluminum Co., Ltd. was also asked about the impact of new technologies on the future of the aluminum industry. In response, Yunnan Aluminum Co., Ltd. stated that in recent years, the aluminum smelting technology has developed rapidly, with significant breakthroughs in carbon-free anodes, inert anodes, high-end alloy rail transit, high-purity aluminum, 3C electronics, circular economy, and other areas. The impact on the future of the aluminum industry is mainly reflected in energy conservation and carbon reduction, energy efficiency improvement, cost reduction, industrial upgrading promotion, and green development facilitation. When mentioning the highlights of the company's future performance improvement, Yunnan Aluminum Co., Ltd. indicated that in the future, the company will continue to leverage its comprehensive competitive advantages in the green and low-carbon entire industry chain, continuously optimize the value chain of the green aluminum industry, and further enhance the brand influence and market value of "Green Aluminum • At Yunnan Aluminum". It will strive to build a "benchmark for first-class green aluminum enterprises", reward investors with sound operating performance, and gradually increase the dividend payout ratio as the company's operating performance improves.

SMM reported on May 16: Previously, Yuguang Gold and Lead Group released a record of investor activities, which mentioned the production, pricing, and sales of copper, gold, silver, and sulphuric acid. The company stated that its copper capacity reached 150,000 mt, with raw material procurement pricing following the "copper grade × coefficient" model to accurately calculate costs. In sales, the company uses the market prices on the Nonferrous Metals Network as a benchmark to ensure fair and transparent transaction prices, closely following market dynamics to effectively balance costs and revenues. For gold, the annual capacity is approximately 15 mt, produced through lead ore smelting, with the main sales channel being the Shanghai Gold Exchange. In procurement, pricing is based on the gold grade in lead ore multiplied by a coefficient, and sales prices fluctuate with the market, closely following market dynamics. For silver, the company has an annual capacity of 1,800 mt, produced as a by-product of lead ore smelting. The company mainly earns processing fees, with mines playing a dominant role in the profit distribution of the industry chain. For sulphuric acid, the annual capacity is approximately 900,000 mt, with significant regional price differences and sharp fluctuations. Prices could reach over 600 yuan/mt at their peak and currently maintain at over 500 yuan/mt, with considerable uncertainty in price trends. In addition, the company also stated that its by-products include various minor metals such as zinc oxide and antimony, all of which are derivatives from the lead smelting process. Due to the low grade of raw ore for these by-products, they are often priced at low costs or even not priced at all during raw material procurement, resulting in significantly lower production costs compared to main products. Leveraging this cost advantage, the company has achieved a high gross profit margin in the by-product production sector, becoming an important supplement to profit growth. According to the company's previously released 2024 annual report and Q1 2025 performance report, the company achieved a total revenue of 39.345 billion yuan in 2024, up 22.40% YoY. The net profit attributable to shareholders of the publicly listed firm was 807 million yuan, up 38.88% YoY. In the annual report, the company stated that in 2024, it achieved a total production of 555,600 mt of lead products, 164,900 mt of copper cathode, 15.13 mt of gold, and 1,566.24 mt of silver, representing increases of 0.31%, 7.53%, 29.11%, and 2.25% YoY, respectively. Revenue, profit, and tax revenue all reached their highest levels in history. Yuguang Gold and Lead Group stated that during the reporting period, the company's revenue and operating costs from non-ferrous metals, precious metals, and chemical products all increased, primarily due to the increase in production and sales volume of the company's main products, coupled with rising market prices. In addition, during the reporting period, the increase in production and sales volume of the company's main products, including primary lead, copper cathode, gold, and silver, along with rising market prices, led to increases in revenue, operating costs, and gross profit for products such as lead, copper, gold, and silver. The rising market prices of antimony products and sulphuric acid have led to a significant increase in operating revenue and gross profit. Regarding the production and operation targets for 2025, Yuguang Gold and Lead Group stated that it aims to produce 702,000 mt of lead products, 15 mt of gold, 1,700 mt of silver, 155,000 mt of copper cathode, and 875,000 mt of sulphuric acid in 2025. In terms of Q1 performance, the company achieved operating revenue of approximately 10.395 billion yuan, up 21.29% YoY. Net profit attributable to shareholders of the publicly listed firm was approximately 229 million yuan, up 35.38% YoY. The company's production and sales of major products in Q1 are as follows: As can be seen from the figure, the company's lead product production in Q1 reached 160,000 mt, with sales of 150,000 mt, both showing an upward trend. In particular, production increased by 16.89% YoY. It is worth mentioning that the performance of lead prices in Q1 was also remarkable. The main SHFE lead contract rose from 16,825 yuan/mt at the beginning of 2025 to 17,445 yuan/mt, with a total increase of 620 yuan/mt, or 3.68%. In terms of spot prices, according to SMM spot quotes, the SMM 1# lead ingot spot price was 16,775 yuan/mt at the beginning of 2025 and rose to an average spot price of 17,150 yuan/mt on March 31, with a quarterly increase of 2.24%. 》Click to view SMM lead product spot quotes On April 10, Yuguang Gold and Lead Group was also asked about the impact of US tariffs on its operations. The company stated that it currently has no export business to the US. In terms of imports, the amount of ore purchased from the US each year accounts for a relatively small proportion. Given the widespread distribution of global mineral resources, the lead ore the company purchases from other countries can effectively replace resources. Therefore, the current impact of Sino-US tariff policies on the company's operations is relatively small. However, the US's move to impose tariff hikes on numerous countries globally has already triggered severe fluctuations in the commodity and capital markets. The subsequent impact on the company's business is temporarily difficult to predict, and the company will closely monitor the development of related events.

SMM News on May 15: In the mid-to-late April, many PV industry chain enterprises successively released their performance reports for the full year of 2024 and Q1 2025. Among them, three PV inverter enterprises, including Sungrow, Deye Technology, and Sineng Electric, all achieved remarkable performance. SMM has compiled the performance of these three PV inverter enterprises, as detailed below: Sungrow's Net Profit Surpasses 10 Billion Yuan for the First Time, Achieving a Strong Start in Q1 According to Sungrow's annual report data, in 2024, Sungrow achieved a total revenue of 77.857 billion yuan, up 7.76% YoY. The net profit attributable to shareholders of the publicly listed firm reached 11.036 billion yuan, up 16.92% YoY. It is worth mentioning that although the growth rate of its annual performance slowed down, from the perspective of net profit, achieving a net profit surpassing 10 billion yuan for the first time is truly remarkable in the current PV industry chain, which is in a downturn cycle. During an investor activity survey, Sungrow also mentioned that amidst slowing industry growth, intensified competition, and widespread losses, it was not easy for the company to still achieve growth in revenue and profit. This was mainly due to the continuous prominence of the company's core competitiveness, the continuous expansion of its brand influence, its consistent focus on the main track, its adherence to in-depth development, the implementation of a full-coverage strategy for core businesses, and the full play of its advantages in the global marketing and service network, leading to continuous improvements in brand power, marketing power, product power, and service power. In terms of business segments, Sungrow's profits mainly come from three major businesses: PV inverters, ESS, and new energy investment and development. Specifically, in terms of PV inverters, the company's PV inverter business achieved stable growth in 2024, with shipments of 147GW in 2024, up 13% YoY, maintaining a leading position in the industry. In terms of ESS, the company's ESS shipments in 2024 reached 28GWh, up 167% YoY, with a slight improvement in profitability. This was mainly due to the strong global market demand and the company's deep cultivation of the ESS market, which has formed a good reputation and brand image. In terms of new energy investment and development, although revenue slightly decreased in 2024, profitability maintained positive growth. This was mainly due to the company's further strengthening of its refined management capabilities throughout the entire project development process, its adherence to low-cost, high-quality, and systematic development in domestic projects, its focus on producing based on sales in household PV, its continuous optimization of refined channel management, and the shortening of grid connection cycles. In terms of gross profit margins, the ESS business ranked first among Sungrow's three major businesses with a gross profit margin of 36.69%. The gross profit margin for power electronic conversion equipment such as PV inverters was 30.9%, and the gross profit margin for new energy investment and development was 19.4%. In Q1 2025, amid a complex and ever-changing external environment, Sungrow continued to achieve a strong start to the year. The company's revenue in Q1 was 19 billion yuan, up 50% YoY, and its net profit attributable to shareholders of publicly listed firms was 3.83 billion yuan, up 82% YoY. Sungrow stated that, in terms of revenue structure, inverters maintained healthy growth YoY, energy storage systems (ESS) achieved rapid growth, and revenue from new energy investment and development business declined, primarily due to an increase in the proportion of low-margin residential PV business revenue. Previously, the US's reciprocal tariff continued to impact the market. Some investors inquired about the company's shipment pace and price changes. Sungrow indicated that PV inverters were being shipped normally. For the ESS business in the US market, shipments had recently been suspended, but the market remained intact, merely postponed; in other markets, the shipment pace was generally in line with expectations. Overall prices remained stable with a slight decline. Regarding the shipment target for the ESS market in 2025, Sungrow stated that the company's global ESS shipment target for 2025, set at the beginning of the year, was 40-50 GWh. Given the current uncertainties surrounding US tariffs, it is difficult to predict the volume in the US. If the US's high tariff policy persists, it could impact annual shipments by 4-5 GWh compared to the initial target under extreme circumstances, but the overall impact on shipments would be limited. When discussing its outlook for the future development of the industry, Sungrow stated that it believes the main drivers of industry development remain unchanged. Firstly, the goal of carbon neutrality remains unchanged. Under this goal, clean energy is expected to continue its steady and sustainable development in the long term. Secondly, in terms of development space, the global share of primary energy consumption from wind and solar power is still low, with renewable energy accounting for only about 14% of global primary energy consumption, of which PV and wind power account for about 5%, indicating significant room for future growth. Thirdly, with the future large-scale development of new energy and technological progress, the levelized cost of electricity (LCOE) will continue to decline, and economic viability will continue to improve, making new energy a cost-effective power source that is expected to maintain rapid growth in the future. Driven by rapid growth in overseas PV ESS business, Sineng Electric's 2024 net profit increased by over 46% YoY Sineng Electric, which also operates in the PV inverter industry, delivered notable net profit performance in both 2024 and Q1 2025. According to its annual report data, in 2024, Sineng Electric achieved operating revenue of approximately 4.773 billion yuan, a decrease of 3.23% YoY, primarily due to the company's reduction in domestic ESS integration business; the corresponding net profit attributable to shareholders of publicly listed firms was approximately 419 million yuan, up 46.49% YoY, mainly driven by the rapid growth of the company's overseas PV ESS business. According to the "2023 Global PV Inverter Shipment Ranking" released by S&P Global, the company ranked fourth globally in PV inverter shipments in 2023, maintaining its position among the top ten in the industry for many years. In Q1 2025, the company achieved revenue of 831 million yuan, up 16.8% YoY; net profit attributable to shareholders of the publicly listed firm was 87.65 million yuan, up 71.6% YoY. Deye Co., Ltd. Achieves Record High Performance in 2024, with Inverter Business Showing Sustained Significant Growth in Recent Years Deye Co., Ltd.'s performance for the full year of 2024 and Q1 2025 was also remarkable. Against the backdrop of most companies in the PV industry struggling with performance, Deye Co., Ltd. achieved a record high in 2024, with total revenue of 11.206 billion yuan, up 49.82% YoY; net profit attributable to shareholders of the publicly listed firm was 2.96 billion yuan, up 65.29% YoY. In terms of Q1 2025 performance, the company continued its positive trend, achieving operating revenue of 2.566 billion yuan, up 36.24% YoY; net profit attributable to shareholders of the publicly listed firm was 706 million yuan, up 62.98% YoY. Deye Co., Ltd. stated that over the past three years, the company's inverter business has shown sustained significant growth, while ESS inverters have driven a substantial increase in ESS battery pack business. The company's multi-market layout overseas has shown clear results, and cost reduction and efficiency improvement have maintained high profit margins, leading to overall improvement in major accounting data and financial indicators. Public information shows that PV inverters are core components of PV systems, and their growth is mainly driven by global new PV installation demand and replacement demand for inverters in existing PV power plants. The growth in global new PV installations will drive rapid growth in the PV inverter market demand. When asked about the company's outlook for the PV industry, Sungrow stated that long-term demand for PV will continue to grow, but the compound annual growth rate from 2024 to 2030 is expected to be over 10%. This is due to the large base and the impact of US tariffs and China's Document No. 136, which may delay the market. The company expects that due to the large base, domestic PV growth this year will face significant pressure, but the following years should be more optimistic. National leaders have recently reaffirmed their commitment to the "dual carbon" goals and their firm confidence in green development. The European PV market remains relatively stable, while the US market may face growth pressure this year. PV markets in other regions such as Southeast Asia, the Middle East, and South America are still growing. Overall, this year may be relatively challenging, but after this year, adjustments and corrections are expected, and the long-term outlook remains confident.